$5.$ Verde is a retailer whose fiscal year ends on June $30.$ The following data are provided for Verde$$s operations:

Cash Sales

Credit Sales

Actual: May$$

$$80,000$

$$500,000$

Actual: June

$90,000$

$600,000$

Projected: July

$115,000$

$700,000$

Projected: August

$300,000$

$400,000$

Projected: September

$240,000$

$600,000$

Other Information:$$

$$ Credit sales are collected as follows: $60\%$ during the month of sale, $40\%$ in the next month.

$$ The gross profit ratio on merchandise inventory is $30\%$ of the sales price. The company$$s policy is to have $5\%$ of the next month's sales in units $($safety stock$)$ available each month. All purchases are on credit: $60\%$ are paid in the same month as the purchase and the remaining $40\%$ in the following month.

a$.$ Give the amount to be reported as the ending cash balance for the combined cash budget for July.

b$.$ Give the amount to be reported as gross margin on the budgeted income statement for July.